anyone know anything about NSX financing?

[veilstylez]

Getting closer to buy the nsx..just looking for the right one.



So my options are to get a line of credit at the rate of 6%(but adjustable) or just get a auto finance. So ive been shopping for a low rate online and capital one has a a rate of 7.05% or something for private party to private party and a 5.59% for used cars but at the dealership. So i was thinking gosh...dealers get a better rate. So i stopped by this used car lot and talked to this guy...really really cool...and i ask him "if i want to buy a car from somebody private can you guys finance me?" he says "sure, i can get 4.9% up to 60-94 months"...but he charging $1000, basically for processing. Im thinking thats not bad or anything, but how come i cant get that rate by doing it myself?


so my question is....do you guys know anything about financing as far as getting a loan online or a bank? Where do i go to get the best auto loan when buying a car from a private party? OR how the process goes? Is it worth it to go the this dealership paying $1000 to get the 4.9%?

any recomendations on fianacing would really help THANKS~!!!

 

[heySkippy]

Is it worth it to go the this dealership paying $1000 to get the 4.9%?

Do the math. Add the $1000 to the cost of the loan (interest you'll pay over the term) and figure out what that bumps the actual rate up to. It's just like paying points on a mortgage. You want a lower rate, you pony up a point but it's either pay now or pay later.

 

[arfnsx]

The same rates are done with AAA financing. 4.9% up to 72 months. http://www.aaasouth.com/finance_auto_financing.asp. So it looks like that dealer was trying to stick it to you. I hope this helps

 

[Dave Hardy]

Check out a credit union if you've got access. I do all of my auto loans through my credit union. The service is great, the rates are low, and they will loan money on older used vehicles, which a lot of banks will not do.

 

[comquat1]

I've found most places will not give a loan on an ten year old plus car (if indeed that is the age you are looking for). Or if they do, it will only be a short term (24-36 mo.). Your best bet is to tap your home equity and get a line of credit there. The interest is deductable on your taxes and you have a very long term to pay back at usually.

Maybe my thinking is old school, but if you don't have some financial stability (i.e. no debt or have a house) I would suggest getting those things first before buying an NSX. You will never get ahead owning an NSX, you will get ahead building equity in a house or paying off your debts (adding an nsx to the list is just another debt). If I bought my nsx before I built my house I would still be living in a sh%$ty apartment yet with stinky neighbors wondering what am I doing with my life. I got my house, tapped the equity and now I've got a safe place to park the car and work on it.

 

[jdc1687]

I've found most places will not give a loan on an ten year old plus car (if indeed that is the age you are looking for). Or if they do, it will only be a short term (24-36 mo.). Your best bet is to tap your home equity and get a line of credit there. The interest is deductable on your taxes and you have a very long term to pay back at usually.

Maybe my thinking is old school, but if you don't have some financial stability (i.e. no debt or have a house) I would suggest getting those things first before buying an NSX. You will never get ahead owning an NSX, you will get ahead building equity in a house or paying off your debts (adding an nsx to the list is just another debt). If I bought my nsx before I built my house I would still be living in a sh%$ty apartment yet with stinky neighbors wondering what am I doing with my life. I got my house, tapped the equity and now I've got a safe place to park the car and work on it.

I'm not really sure I see your logic here... Only recently has it become so popular to take equity from a house to buy consumer goods. While taking a fixed home equity loan is probably better than a car loan, it is still a debt. Do not fool yourself into thinking otherwise. Personally, I think the "benefits of home ownership" are far over rated. The last 10 years has been really good to us. Maybe a little too good.

In so far as how someone chooses to purchase their car; that is up to them. Keep in mind, paying for a car over time might make sense with the rates being so low. Since the money is not tied up in the car that person is able to use the cash for some other purpose.

-Jer

 

[comquat1]

I'm not really sure I see your logic here... Only recently has it become so popular to take equity from a house to buy consumer goods. While taking a fixed home equity loan is probably better than a car loan, it is still a debt. Do not fool yourself into thinking otherwise. Personally, I think the "benefits of home ownership" are far over rated. The last 10 years has been really good to us. Maybe a little too good.

In so far as how someone chooses to purchase their car; that is up to them. Keep in mind, paying for a car over time might make sense with the rates being so low. Since the money is not tied up in the car that person is able to use the cash for some other purpose.

-Jer

My thinking is that eventhough you are borrowing against the equity in your house (yes debt) you still have something in your possession that will be going up in value over time (a house) vs. not having something that will go up in value (not a house). Granted not all markets are the same, but the overall trend is houses go up in value. Add into fact that the interest you are paying on your line of credit (which paid for the car) is tax deductable and I don't see why if someone has the means to purchase a house, they would forego that to purchase a car. I also understand that not all people have the same goals of financial independence as others, so to each their own.

 

[Dave Hardy]

I can't agree with using home equity to buy a car. Yes, there are tax benefits, but I have a philisophical problem in paying for a toy by sacrificing the roof over my head. I'm just old fashioned that way I suppose.

And yes, my credit union will loan on older cars. I checked when I first bacame interested in NSX's. They had no problem with a 91. The rate at the time was about 6%. I do have excellent credit (just shy of 800) so that might be part of it, but there are options.

 

[comquat1]

I can't agree with using home equity to buy a car. Yes, there are tax benefits, but I have a philisophical problem in paying for a toy by sacrificing the roof over my head. I'm just old fashioned that way I suppose.

And yes, my credit union will loan on older cars. I checked when I first bacame interested in NSX's. They had no problem with a 91. The rate at the time was about 6%. I do have excellent credit (just shy of 800) so that might be part of it, but there are options.

How are you sacrificing the roof over your head? If you are thinking by using an equity line of credit you will not be able to support paying it back and paying for your house then you are correct, you should not purchase a toy with it.

On the other hand, if you can't afford to do it that way, then maybe you should not be buying a toy at all. Unless you are living with your parents and don't pay some kind of rent, a house payment is not much more than an appartment payment. So tapping home equity or getting a car loan really is the same thing when you look at the ammount you have to pay back, the luxury of equity tapping is you can spread it out for a longer period, thus lowering your payment (but paying more interest). I did a home equity simply because just in case I had a lean month (I'm in sales and on commission) I could theoretically just pay the interst on the car and skip a payment, an auto loan would not let me do that. Also, when I bought my car I made a promise that I would pay this car off first before I do anything else in the relm of toys. In two years I almost have it completely paid off, in less than 6 months, the car will be owned by me outright. Again, I see things one way and others see them another. I know what has worked for me and I hope no one takes offense to my suggesting they try what I did. I do realize though that 95% of you out there don't plan your lives financially like I do. Everyone is different in that regard.

 

[Dave Hardy]

How are you sacrificing the roof over your head? If you are thinking by using an equity line of credit you will not be able to support paying it back and paying for your house then you are correct, you should not purchase a toy with it.

When times are good, it is the obvious way to go. I've found that people who plan their finances around good times are not well prepared for lean times. Plan your finances for lean times and during the good times you can save for a rainy day, buy toys, etc., but if/when the lean times hit you aren't financially devestated.

Say another 9/11 happens and the economy takes a dump again (almost an inevitability). Were I to lose my job, I'd be a whole lot happier to give up toys than houses. If the finances are jumbled up, it's not easy to do that.

I will add in the disclaimer that I'm very conservative with my money, and have been accused more than once of being a cheap bastard. OTOH, I'm on track to retire in my early 50's, so you make tradeoffs.

 

[NSXFreak00]

credit unions are your best bet.

My credit score is like a 750 or something. ( i think its pretty decent, however I have no idea how i got that, as I never pay my bills ontime)

My credit union gave me 4.3% on a 97nsx.

They offered to give me retail value of the car +10% in terms of face value of loan.

It was a good deal compared to the 7.65% $25k max amount Eloan was offering.

 

[veilstylez]

arfnsxtc
hahah this rate is for aaaSOUTH(florida and etc...) Anyone in cali know a place to go to for financing.

guys...im still trying to figure out which way to go... but right now im looking for a auto loan.....

Where do i go for an AUTO LOAN?

 

[comquat1]

If you are looking 91-96 years I think you will have a hard time finding a place to get a straight up auto loan. Alot of banks think the car is too old. However, can you live with a 36 month loan? IF you can then in that case I think you could get a loan from a credit union that will classify the nsx as a "collector car." Mine would have done that if I got an appraisal done prior to buying.

 

[Nsxdaniel]

I am planning on buying a 1997+ NSX-T sometime this year. Someone said it earlier but I would suggest looking into getting an auto loan from a credit union. The credit union that I belong to currently is offering auto loans on new or used cars for 4.99% for up to 72 months. It doesn't matter who you buy the vehicle from. Their only stipulation is that they will finance 100% of blue book value plus taxes and fees. This won't be a problem since I would not be financing 100% anyway.

I financed my last vehicle, a Honda Element, through Capital One Auto Finance. I was real happy with their service. However, it was a new car buy through a dealer. The interest rate on a used NSX would be too high for me to consider using them again especially since the purchase would probably be through a private individual.

Daniel

 

[jdc1687]

My thinking is that eventhough you are borrowing against the equity in your house (yes debt) you still have something in your possession that will be going up in value over time (a house) vs. not having something that will go up in value (not a house). Granted not all markets are the same, but the overall trend is houses go up in value. Add into fact that the interest you are paying on your line of credit (which paid for the car) is tax deductable and I don't see why if someone has the means to purchase a house, they would forego that to purchase a car. I also understand that not all people have the same goals of financial independence as others, so to each their own.

I didn't mean to say that using home equity is a bad way to finance a major purchase; I just wanted to point out that the money attained by borrowing against your mortgage is just as real as any other......

 

[johninfl]

Capital One Auto Finance. Do the online application and they mail you a blank check in a few days good for any amount up to your approval limit, regardless of the age of the car.

 

[comquat1]

I didn't mean to say that using home equity is a bad way to finance a major purchase; I just wanted to point out that the money attained by borrowing against your mortgage is just as real as any other......

I fully agree, I just simply like the advantage of being able to skip a payment if funds aren't available. Maybe my situation is different than others here, but I'm in sales and am paid on commission, one month I make x ammount and the next month I'll make y. There's no set ammount that I can even budget for. Being able to adjust my payment is a plus for me as well as the tax deduction.

 

[gfunk808]

Interesting discussion as I am also considering the home equity line of credit (HELOC). Let's see if I can break this down a little more (and try not to generalize too much)...

In terms of reducing risk, I think all would agree that it's always better to purchase with cash than to take out a loan. But for those of us who don't have all that cash on hand - financing is the main option. The two main types of financing at debate seem to be auto loan vs. HELOC.

So if we go the HELOC route, we are basically putting our house at risk. But what is the risk here? Assuming we are properly insured (against potential damage), aren't we holding a valuable asset that can be readily sold (at a small loss) should that rainy day arrive? By using the HELOC, we hold title to the car and it can be sold more quickly than when a lien is present.

That being said, I think the real factor is cash flow - can you afford the payments, what's your cash reserve, etc.? And that's where all the other terms come into play: with auto loan it's fixed rate but short term, with HELOC it's variable rate but long term.

Thoughts?

 

[comquat1]

Interesting discussion as I am also considering the home equity line of credit (HELOC). Let's see if I can break this down a little more (and try not to generalize too much)...

In terms of reducing risk, I think all would agree that it's always better to purchase with cash than to take out a loan. But for those of us who don't have all that cash on hand - financing is the main option. The two main types of financing at debate seem to be auto loan vs. HELOC.

So if we go the HELOC route, we are basically putting our house at risk. But what is the risk here? Assuming we are properly insured (against potential damage), aren't we holding a valuable asset that can be readily sold (at a small loss) should that rainy day arrive? By using the HELOC, we hold title to the car and it can be sold more quickly than when a lien is present.

That being said, I think the real factor is cash flow - can you afford the payments, what's your cash reserve, etc.? And that's where all the other terms come into play: with auto loan it's fixed rate but short term, with HELOC it's variable rate but long term.

Thoughts?

Why not pay your HELOC back at what a typical monthly payment would be for a short term loan. Then it's exactly like a loan, except you get to deduct the interest come tax time.

 

[SKIBANKER]

Absolutely agree with gfunk808. All that matters is the AFTER TAX interest rate (so take your HELOC interest multiplied by 1-tax rate). Everything else is just a financial flexibility discussion, regardless if the loan is based on home equity or a car in your driveway.

That said, anyone have any particularly good or bad experiences with any of the national auto lenders (Eloan or Capital One, mentioned above)? I'm looking for my first NSX and am considering financing options. Thanks!

 

[TyraNSX]

I'm with comquat1. HELOC gives you flexibilty. In my case, when I sell my condo at current market conditions, I will have enough to pay off mortgage, pay off HELOC, pocket a good chunk of cash, and drive away in my NSX. Not a bad arrangement. Plus, for those of us in the northern armpits of the country, when you hold title you can drop collision insurance in the winter (just don't drive it anywhere). This saves some $ to put toward the HELOC and you can't do it with a regular car loan. And as he said, if you hit a bad month, just pay the interest. can't do that with a car loan. They want ther large pymt every month.

 

[jskim9]

Unless you are living with your parents and don't pay some kind of rent, a house payment is not much more than an appartment payment.

you obviously don't live in California :smile:

I think this discussion has gone into symantics of value. Some might think that owning a toy is more important than others. I'm 27, making good money, with a choking student loan. I want a mid-priced NSX, but I veto'ed myself for some of the reasons listed above. Buying a house is top fiscal priority right now. In fact, I decided against buying any car for now. Buy a $500k condo in the near future (in LA, a 2 bedroom, 1100sqft condo goes for about $500k!!!) and build equity and credit there. After a significant chunk has been paid off, I'll then buy myself an NSX (... or a Skyline if RBMotoring succeeds in importing them the way Motorex did). But I agree, buying a house first makes more sense, but I guess it also depends on where you live.

Live in the midwest, where housing doesn't drain your blood, I guess you can afford an NSX prior to buying property. In CA, you can't do anything before owning real estate.

 

[drewdeezee]

Hey jskim9,

I also want an NSX so bad I can almost taste it. I'm your age and also making a decent living. I'm so torn between financing an NSX now vs equity-financing an NSX after buying a house. I'm also in Southern CA so real estate here is ridiculous. I'm torn between my passion for the car and doing the responsible thing by saving up to buy a house. (note: responsible = what friends and family have been advising)

Everyone is telling me not to get one: friends, family, coworkers, girlfriend. However, I still can't or don't want to heed their advice. I want to get one now before having monthly mortgage payments of $2000+, wife/wedding, kids(maybe).

I'm logged onto NSXPrime everyday and the more I read/learn of the NSX, the less scared I am of making the jump. This is an awesome, awesome site.

 

[menuserve]

just try capital one online... mine was 4.9% for 60 months!